US home sales likely fell in December

WASHINGTON — Last month's U.S. sales of previously occupied homes are expected to be down sharply from November after prospective buyers were granted more time to take advantage of a tax credit.

Buyers last month were no longer scrambling to qualify for a tax credit for first-time homeowners that was due to expire on Nov. 30. To give the market an added boost, lawmakers extended it until April 30. They also added a new credit of up to $6,500 for existing homeowners who move.

Economists polled by Thomson Reuters forecast that sales completed in December fell 9.8 percent to a seasonally adjusted annual rate of 5.9 million, from 6.54 million in November. The decline would reverse three straight months of increases.

The National Association of Realtors' report is scheduled for release Monday at 10 a.m. EST.

Earlier this month, the trade group said its index of sales contracts fell 16 percent from October to November, ending nine months of gains. Since it normally takes one to two months to complete a sale, that signals weak sales for December and January.

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